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CIRCUIT COURT OF OREGON

MARION COUNTY

IN THE MATTER OF:

AMERICAN TECHNOLOGIES GROUP,
INC., a Nevada corporation.

Respondent .

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No. 97C14017

ASSURANCE OF VOLUNTARY
COMPLIANCE

[ORS 648.632(2)]

1.

Respondent American Technologies Group, Inc. ("ATG") is a Nevada corporation which has sold some of its products to businesses which have distributed products in Oregon which included some of respondent's products as components. This Assurance of Voluntary Compliance ("AVC") is an agreement between Respondent and the Oregon Department of Justice ("DOJ" or "The Department") acting pursuant to ORS 646.632(1).

PROCEDURE

2.

This Assurance of Voluntary Compliance (AVC) is the settlement of a disputed matter. It shall not be considered as an admission of any violation of any law, statute or rule, for any purpose. Respondent and DOJ agree that no provisions of this AVC operates as a penalty, forfeiture or punishment under the United States, under the Constitution of the State of Oregon, or under any other provision of law.

3.

This AVC resolves any and all claims the Department may have regarding the marketing of laundry products distributed to data as described in paragraph 1, including but not limited to globe-type laundry products, such as the SuperGlobe System. Globe–type products are generally described as plastic enclosures in which fluids are sealed. The products described in this paragraph are referred to collectively herein as "the products." The products constitute goods as defined in ORS 646.605(7).

4.

The products were distributed in Oregon by TradeNet pursuant to advertisements which promoted some of the products on the basis that IE technology was contained or used in the products.

5.

The Department has caused scientific analysis and testing to be performed on the products promoted as containing IE crystal DOJ believes that the claims made by the marketers of the products, including TradeNet, were not true.

6.

Respondent disputes any and all assertions by The Department that the IE technology attributed to the products is anything less than Respondent has represented it to be. Respondent believes that the IE technology attributed to the products is genuine and that scientific evidence exists to support his position.

7.

Respondent agrees to pay to DOJ twenty thousand dollars ($20,000.00) to be deposited by DOJ as a fund for Oregon residents who purchased "The Laundry Solution" or "SuperGlobe" products. These funds stall be administered and paid out by DOJ on the same terms and conditions as set forth in separate Assurances of Voluntary Compliance executed by TradeNet.

8.

Respondent acknowledges receipt of a notice from the State of Oregon pursuant to 0RS 646.632(2) Respondent executes this AVC for settlement purposes only.

9.

Respondent understands and agrees this AVC applies to respondent, respondent's principals, officers, directors, agents, employees, representatives, successors and assigns, jointly and severally, while acting personally, or through any corporation or other business entities, whose acts, practices or policies are directed, formulated or controlled by respondent.

10.

Respondent and respondent's attorney agree and understand that following acceptance of the AVC by DOJ, DOJ may communicate directly with respondent for the purpose of executing and enforcing the terms of this agreement resolving future complaints, and conducting undercover investigations of respondent.

11.

Respondent understands and agrees that if this AVC is accepted by DOJ, it will be submitted to the Circuit Court of the State of Oregon for Marion County for approval, and, if approved, will be filed with the court pursuant to ORS 646.632(2).

12.

Respondent waives any further notice of submission to and filing with the court of this AVC. Respondent agrees to accept service of a conformed copy by prepaid first class mail sent to the address following respondent's signature.

13.

If monies which are ordered to be paid in this AVC are not paid timely, DOJ may convert the AVC to a money judgment under ORS 646.632(2) without notice to respondent. Respondent agrees a copy of the money judgment may be sent to respondent, first class mail to the address following respondent's signature.

14.

Respondent understands that, in addition to any other sanctions which may be imposed under this AVC or under the law, violation of any of the terms of this Assurance of Voluntary Compliance may result in contempt of court proceedings, civil penalties of up to $25,000 for each violation, and such further relief as the court may deem appropriate. ORS 646.632(4), ORS 646.642(1) and 646.642(2).

15.

The parties acknowledge that no other promises, representations or agreements of any nature have been made or entered into by the parties. The parties further acknowledge that this Assurance constitutes a single and entire agreement that is not severable or divisible, except that if any provision herein is found to be legally insufficient or unenforceable, the remaining provisions shall continue in full force and effect.

REVIEW BY RESPONDENT'S ATTORNEY

Approved as to form.
Schwabe Williamson & Wyatt, P.C.

/s/ _________________________________
Kurt F. Hansen, OSB 84240
of Attorneys for Respondent
American Technologies Group, Inc.

RESPONDENT'S SIGNATURE AND ACKNOWLEDGMENT

Respondent has read and understands this agreement and each of its terms. Respondent agrees to each and every term.

Corporate Respondent

I,Lawrence J. Bardy being first duly sworn on oath depose and say that I am the President of American Technologies Group, Inc., and am fully authorized and empowered to sign this Assurance of Voluntary Compliance on behalf of American technologies Group, Inc. and bind the same to the terms hereof.
/s/ _________________________________
[Corporate Officer's Signature]
/s/ Lawrence J. Brady
Print Name
President
Title
Address_________________________________
_________________________________

SUBSCRIBED AND SWORN to before me this 11th day of November, 1997.

/s/ _________________________________
[Notary's Signature]
Affix Stamp

ACCEPTANCE OF DOJ

Accepted this 12th day of November, 1997.
HARDY MYERS
Attorney General
/s/ _________________________________
Robert Roth #92124
Assistant Attorney General

APPROVAL BY COURT

APPROVED FOR FILING and SO ORDERED this 12 day of Nov, 1997.
/s/ Richard Barber
Circuit Court Judge

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Phone: (503) 378-4400
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Updated: April 11, 2002